What is a Health Savings Account (HSA)?

What is a Health Savings Account (HSA)?

Health Savings Accounts allow qualified individuals to set aside pre-tax money to pay for qualified medical expenses. Money contributed to an HSA is exempt from federal income tax, FICA and state income taxes (for most states). Money in an HSA acts similar to a savings account; it stays there until you use it, and most accounts even earn interest on the savings. HSAs can be a valuable savings tool for those planning for their out-of-pocket medical expenses. HSAs can be used for all medical care costs, including deductible amounts, co-pays, co-insurance, over-the-counter medical items (drugs require a prescription) and more. View our HSA Eligibility List for a complete listing of HSA eligible expenses.

All FAQs